The Kofax Ltd (NASDAQ:KFX) board of directors have been put under the microscope lens of Harwood Feffer LLP. The company has been accused of violation of terms and conditions while acquiring Lexmark International Inc (NYSE:LXK). Both the companies entered into a merger agreement recently.
Terms and Conditions
The terms and conditions include share price for every share holder at the rate of $11 per share in cash. The total transaction value totalled to approximately $1 billion.
Concerns for investigation
The concern for such investigation is to make sure that whether board of directors are fulfilling all the terms and conditions along with their responsibilities and duties or not. This is done to check that all duties are fulfilled in favor of all the stake holders.
The investigating company said that the concerns of probe are in relation to the fiduciary duties of the Board. It shall be checked whether the acquiring company has maximized the fiscal value of its business and disclosed all costs and material benefits or not. Not adhering to the aforementioned concerns might pose a threat to the deal of this company with Lexmark International Inc.
Impact of the proposed acquisition
Lexmark is supposed to hold 75% of the market stocks and they have announced about expanding their enterprise business by double the present one. This will count about $700 million with around $100 million expanding of its software market. Kofax Ltd (NASDAQ:KFX) is going to help in the growth and will increase the margin values of Lexmark’s Business.
The deal is supposed to be closed by second quarter of 2015. This needs shareholder approval and other custom clearance along with a range of formality approvals. This taking over will lead to enhanced software business as well as properly balanced financial sheets and costing. This will lead in strong and balanced business, which will pull in more of overseas cash.